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r3020
Senior Advisor

Saving social security

He will do it with your IRA or 401K.

 

snip-

A recent hearing sponsored by the Treasury and Labor Departments marked the beginning of the Obama Administration’s effort to nationalize the nation’s pension system and to eliminate private retirement accounts including IRA’s and 401k plans, NSC is warning.

The hearing, held in the Labor Department’s main auditorium, was monitored by NSC staff and featured a line up of left-wing activists including one representative of the AFL-CIO who advocated for more government regulation over private retirement accounts and even the establishment of government-sponsored annuities that would take the place of 401k plans.

"This hearing was set up to explore why Americans are not saving as much for their retirement as they could," explains National Seniors Council National Director Robert Crone, "However, it is clear that this is the first step towards a government takeover. It feels just like the beginning of the debate over health care and we all know how that ended up."

A representative of the liberal Pension Rights Center, Rebecca Davis, testified that the government needs to get involved because 401k plans and IRAs are unfair to poor people. She demanded the Obama administration set up a "government-sponsored program administered by the PBGC (the governments’ Pension Benefit Guarantee Corporation)." She proclaimed that even "private annuities are problematic."

Such "reforms" would effectively end private retirement accounts in America, Crone warns. "These people want the government to require that ultimately all Americans buy these government annuities instead of saving or investing on their own. The Government could then take these trillions of dollars and redistribute it through this new national retirement system."

Deputy Treasury Secretary J. Mark Iwry, who presided over the hearing, is a long-time critic of 401k plans because he believes they benefit the rich. He also appears to be one of the Administration’s point man on this issue.

"This whole issue is moving forward very quickly," warns Crone. "Already there is a bill requiring all businesses to automatically enroll their employees in IRA plans in which part of every employee’s paycheck would be automatically deducted and deposited into this account. If this passes, the government will be just one step away from being able to confiscate all these retirement accounts."

NSC has taken the lead in warning the nation about this new government onslaught and is plotting ways to stop it.

"This effort ultimately is designed to grab the retirement nest eggs of America’s senior citizens. This new government annuity scheme, even if it is at first optional, will turn into a giant effort to redistribute the wealth of America’s older citizens," explains Crone. "This scheme mirrors what I expect the President will try to do with Social Security. He wants to turn that program into a welfare program, too."

NSC will likely unveil a new grassroots campaign effort later this year or early in January to coincide with the seating of the new Congress.

 

http://www.nationalseniorscouncil.org/index.php?option=com_content&view=article&id=89%3Aobama-begins...

13 Replies
Nebrfarmr
Veteran Advisor

Re: Saving social security

I guess I thought they'd just tax the SS benefits of the 'rich' at a high rate. Sine there is too much opposition to get benefits cut, and cries for taxing the 'rich' my guess was that above a certain level of total income, ior even wealth, SS benefits would be subject to a high tax. I can't see them taking your IRA, but I can see them taxing any form of income you have coming in. It would be ironic, if those railing against getting their benefits cut $100 just because they are rich, instead paid $200 in taxes on their benefits.
schnurrbart
Veteran Advisor

Re: Saving social security

You first need to question the agenda of the NSC and see who they really are.  I pay taxes on all my monetary benefits coming in and the SS is reported.  Can't remember right now if it is actually taxed or not but it is so small--less than $5000/yr--that it can't be much if it is.

they gotta have it

It's the biggest pool  of money available out there.  The ptb will do anything to keep the system from crumbling.  You can believe they are eyeing that jackpot.    The pbgc was like 32 billion in the red last quarter, the union pensions are in no way adequate. The unions pensions need 8-9% returns on their investments to meet their projections and they are no where close to getting it.  They need that pool of retirement money. 

 

they'll have to sacrifice the stock market to get it, but when it comes down to the choice, it'll happen.

Nebrfarmr
Veteran Advisor

Re: Saving social security

My comment was more a prediction of a possible outocme, rather than any agenda.

We both know, means testing is not likely to happen with SS.  Those that paid in, want money back.  We also know, that the push is for the 'rich' to pay more in taxes.  So, rather than cut SS benefits for the rich, I predict that their taxes (possibly even the taxes on SS benefits) will be raised as much or more than the benefit cut would have been.

 

To me, I don't see the difference between paying $200 more in taxes, or recieving $200 less in benefits, but I think that is the road that we are headed down.

GreaTOne_65
Senior Contributor

Re: Saving social security

Here's some more information about the 401k's that should be of interest.

 

http://www.mybudget360.com/retirement-myth-401k-myth-wall-street-putting-middle-class-retirement-at-...

gough whitlam
Senior Contributor

Re: Saving social security

This country has compulsory superannuation, 9% of your gross wage.  When the conservatives, who were in opposition and first heard about it their exploded. The Left government took control of it and delegated who was to control it from then on.  Last I heard their was something like 3 trillion bucks in designated accounts waiting for peoples retirement. The reason they hit the roof was because their mates at the big end of town couldn't get their grubby little hands on it to repeat your recent GFC.  Their is a sense of deja vu here.  It appears you are only hearing their side of the story but then you have always been one eyed. You have a bit to learn on this yet.

schnurrbart
Veteran Advisor

Re: Saving social security

The difference is that if you raise SS taxes by $200, it really doesn't cause much harm for most people because they are working and paying into SS but if you cut $200 in benefits, this comes from people no longer working and not paying into and depend on what they recieve so it could make a big difference to cut benefits!

Nebrfarmr
Veteran Advisor

Re: Saving social security

I was meaning the tax would be on the well off. Would it really matter, to cut benefits for the rich to pay $200 more in taxes, or get, $200 less in benefits. The poor would not be affected.

Re: Saving social security

There is truth in that article gto, but be careful where it leads you. Blindly turning your money over to anyone be it a broker or an IRS agent is a sure way to be fleeced.